Casa Del Niño Schools System, Inc.

Region 02
CASA DEL NIÑO MONTESSORI SCHOOL OF ILAGAN
Guinatan, City of Ilagan, Isabela
S.Y 2020-2021

Grade 12
Entrepreneurship
Module 5

Title: The marketing plan

Scope:
In chapter 4, we discussed the major sections of the business plan, including the information
needed to write those sections. In this chapter, we look more closely at the marketing plan and
spell out the steps that must be taken in preparing it. We also examine the components of the
marketing mix and discuss what must be considered in developing a marketing strategy and its
accompanying action plan.

Objectives:
Define what a marketing plan is
Explain the relevance of the industry to the market planning process
Identify the steps in preparing the marketing plan
Determine the elements that must be considered in developing strategy for each
component of the marketing mix
Prepare a marketing plan for a product idea.
Overview
.The marketing plan is a written document that provides direction for the marketing
activities for a specific period of time. The plan is a critical planning tool as it provides direction
for the organization.
Discussion of the Lesson:
WHAT IS A MARKETING PLAN?
A marketing plan is a document containing the marketing objectives, marketing strategies, and
the activities that will be undertaken to execute these strategies. The plan must consider the
overall goals of the enterprise, which must take precedence over the specific marketing
objectives. It must also be based on valid assumptions about the financial resources, physical
resources, and human resources that will be available to the business venture.

COMPETITOR ANALYSIS
The marketing strategies that the entrepreneur will execute must be based on an intelligent
assessment of the business environment. Pricing strategies, for example, must consider the
purchasing power of the customers as well as the price levels of similar products available in the
market. Distribution strategies, on the other hand, must consider transportation costs or the costs
of operating a retail outlet. In short, decisions concerning the 4Ps of marketing – product, price,
place, (distribution), and promotion (also known as the marketing mix) four elements influence
each other and how they can be integrated to effectively exploit business opportunities.
 Table 5.1 Comparison of the Marketing Strategies of Major Competitors

Company A Company B Company C Your Company

Target Market

Product/ service
strategies

Pricing strategies

Distribution
strategies

Promotion strategies

Once the strategies have been summarized, the entrepreneur can now proceed to identify his
competitors’ strengths ( or benchmarks that must be met or surpassed) and weaknesses ( or gaps
in the execution of the strategy), which could be listed in Table 5.2 the MADI questions of Dr.
Ned Roberto provides a useful way if identifying unmet or unsatisfied customer needs and
expectations. This will require the entrepreneur to interview customers or a conduct a focus
group discussion (FGD) to determine the following about products or services that now exist in
the market:

M – What is MISSING (“Kulang”)

A- What is ANNOYING (“Nkakabuwisit”)
D – What is DISSAPPOINTING (“Nakakabanas”)
I – What is IRRITATING (“Nakakainis”)

Table 5.2 Strengths and Weaknessess of Major Competitors

Company A Company B Company C
Strengths
( Benchmarks)
Weaknesses
(Execution gaps)

Let us go back to our entrepreneur planning to offer flavored pan de sal. By asking the
MADI questions, he might just validate his intuition, which led him to his product idea. For
example, one of the FGD participants might say: “Puro plain pan de sal at Spanish bread lang
ang binebenta. Sana may iba pang flavors.” ( The bakery only sells plain pan de sal and Spanish
bread. I wish they could offer additional flavors). Or he could get comments such as

WHAT ARE THE STEPS IN PREPARING THE MARKETING PLAN?

Preparing the marketing plan involves the following steps: (a) assessing the business situation;
(b) defining the target market; (c) setting the marketing goals and objectives; (d) developing
marketing strategy and action programs; and (e) preparing the budget for the action plan.
Assessing the Business Situation
If the marketing plan is being written after the business has already started, it should
describe present market conditions and how the company’s goods and services fare against those
of its competitors. Any future opportunities must also be presented. Since the industry and
competitive analysis had already been done in the first section of the business plan, the
entrepreneur should just reiterate some key elements to help provide the context for decisions
concerning the target market and the strategies that will be employed to address the needs and
expectations of this segment of the market

Defining the Target Market

Gone are the days when a company can offer a single product to everyone. Early in the
twentieth century, Henry Ford succeeded in selling the Model T (one style, one color, one size,)
to the mass market, primarily because the Ford Company was able to bring down the cost per
unit by producing the cars in large numbers on assembly lines. In fact, Ford is famous for his
quip:” Any customer can have a car painted any color that her wants so long as its black.”
A process of dividing the market into small groups that have some similar characteristics.
By focusing only on a particular segment, the entrepreneur can develop a product or service that
is responsive to the needs of this specific group. Drawing from the industry analysis and the
market research, the entrepreneur should have a good idea of who his customer or target market
ought to be.
Step 1: Decide what general market or industry you wish to enter
Step 2: Divide the market into smaller groups based on customer characteristics: (a)
demographic (e.g., age, gender, educational attainment, occupation, income
level); (b) psychographic (e.g., personality, lifestyle); (c) geographic ( e.g.,
barangay, city/ municipality, province, region).
Step 3: Select segment or segments to target.
Step 4: Prepare a marketing plan integrating product, price, distribution, and promotion.
Setting the Marketing Goals and Objectives
Before strategies can be formulated, the entrepreneur must know where he intends to
bring the business. Thus the answer to the question “Where do we want to go”? This is where
goals SMART come into play: SMART means that marketing objectives must be: S- Specific,
M- Measurable, A – Attainable, R – Realistic, and T- Time-bound. For example, it does not help
much if the entrepreneur simply indicates his desire to increase sales by the end of the year.
Marketing goals can be expressed in terms of the following: market share, market
penetration, revenue by territory, new products launched, number of distributors, customer
service responsiveness, sales promotion, and advertising expenditures. For example, our pan de
sal entrepreneur might have the following objectives for the year: 10% market share, 70%
market awareness, three new products launched, and distribution of 1000 flyers in the nearby
church market, and schools.

Developing Marketing Strategy and Action Programs

Once the marketing goals and objectives have been set, the entrepreneur can
proceed with developing his marketing strategy and accompanying action plan. Thus, in
answering the question “How do we get there?” strategies should be formulated for each element
of the marketing mix. Product. This must include a description of the product or service that will
be offered by the business. Aside from the physical characteristics of the product, there must also
be a description of other important components that add value to the customer, such as the brand
name, image, packaging, delivery time, after sales service, and warranty.
Pricing. Price is an important consideration for many buyers, and must therefore be given
appropriate attention by the entrepreneur. But what must be considered when deciding on the
price of a product? The most critical are cost, competition, and perceived value.
For cost- based pricing, entrepreneurs must make sure that they calculate both variable
costs and fixed costs. Variable costs are those incurred on each unit that is produced, such as
direct labor, raw material, commission given to a salesperson, or the cost of packaging. Fixed
(overhead) costs refer t costs of things such as facilities and equipment that do not change with
the number of units that are produced.
For competition- based pricing, entrepreneurs must consider the prices of existing
products or services in the market. Offering an affordable price, even for an innovative product,
would encourage customers to switch from more established products to the new product. The
entrepreneur must also anticipate the reaction of competitors.
For value – based pricing, entrepreneurs must be aware of the value attached by
customers to products or services. Why, are some customers willing to pay much more for a
product such as Apple’s iPhone, when there are more affordable alternatives like the locally-
made MyPhone? It can be argued that the iPhone has several product features that the MyPhone
does not have. What accounts for the huge price difference could be the “Intangible benefits”

Place. What is the best way of getting the product to the consumer? When deciding on a
channel for distributing one’s product, the entrepreneur must consider the following interrelated
factors: (a) the channel’s directness, (b) the customer’s convenience, and (c) cost – effectiveness.

Entrepreneurs can also consider a combination of these different channels including

electronic retailing. In the Philippines, entrepreneurs can make their products available through
e- retailing companies like Lazada, which offers a wide range of items that include fashion
apparel, electronics, car accessories, home appliances, and Zalora, which allows independent
merchants to sell their products, especially clothing, footwear, accessories and beauty products
(https:// www. Technasia.com. 10-popular- ecommerce- sites- Philippines).

Promotion. For start – up businesses, it is essential for the entrepreneur to make his product
known to his potential consumers. He can do this by utilizing traditional media such as print,
radio, and television, or by tapping new media, such as the Internet.

Preparing the Budget for the Action Plan

The budget needed to execute the marketing strategies and activities can be included in
the Marketing Plan when prepared as a stand alone document

WHAT MUST BE CONSIDERED IN DEVELOPING MARKETING STRATEGY AND

ACTION PLANS?
Evidently, the entrepreneur has to make many decisions concerning the marketing of a
product or service, based on what was discussed in the previous section. Table 5.3 summarizes
these areas for decision- making.

Table 5.3 Marketing mix decisions

Marketing Mix Areas for Decision -Making
Product Product features, style, options, brand name, quality of materials
or components, product- bundling, packaging, sizes, after- sales
service, and warranties
Price Quality image, list price, quantity, discounts, allowances for quick
payment, credit terms, and payment period
Place (Distribution) Setting up of own d istribution outlet, use of wholesalers and /or
retailers, number of distributors, number of channels, geographic
coverage, inventory, transportation, and use of electronic channels
Promotion Media alternatives, message, advertising budget, sales promotion
(e.g., displays, flyers, coupons, special events), use of social
networking, website design and interface, and publicity efforts

It must be reiterated that a decision on one element of the marketing mix must be linked
to decisions on the other elements. For example, a decision to highlight the quality and brand of
the product might be undermined by a decision to offer the product at a lower price range. Even
if the cost of producing the product might be low enough to justify the low price, offering the
product at a much higher price might be more consistent with the image that it intends to project
to its intended target market.

Self Check Test

Explain the following
1. Why is it important to define the target market when preparing a marketing plan?
2. What is the difference between cost- based pricing and value-based pricing?Which
pricing scheme is more advantageous for the entrepreneur?
Assessment
Directions:
A. Read and the following sentences. Write your answer on the space
provided.
___________ 1. It is a document containing the marketing objectives and marketing
strategies.
___________ 2. This is the marketing strategies that the entrepreneur will execute must be
based on an intelligent assessment of the business environment.
___________ 3. This include the description of the product or service that will be offered by
the business.
___________ 4. These are incurred on each unit that is produced, such as direct labor, raw
material, commission given to a salesperson, or the cost of packing
___________ 5. It refer to the costs of things such as facilities and equipment that do not
change with the number of units that are produced.
B. Enumerate and explain the steps in preparing the marketing plan

1.__________________________________________________________________
2.__________________________________________________________________
3.__________________________________________________________________
4.___________________________________________________________________

Reference:

Pathways to Entrepreneurship

Author: Raymund B. Habaradas , DBA